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The Economy Is Growing Faster Than the Government Says

The official top-line figure for the first quarter is 2%. A more accurate measure puts the rate at 2.8%.

By

Jason Furman

July 9, 2018 6:54 p.m. ET

If you’re looking for the most accurate view of economic growth, you won’t find it in the government’s top-line statistics. Last month the Bureau of Economic Analysis revised its estimate for the first quarter of 2018; the BEA now says gross domestic product grew 2%, annualized, down from the previous figure of 2.2%. This dramatically understates the economy’s actual performance. A better measure, factoring in statistics on incomes, shows growth steaming along at a much stronger 2.8%.